Deckers Outdoor (NYSE:DECK – Get Free Report) and Perfect Moment (NASDAQ:PMNT – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Volatility and Risk
Deckers Outdoor has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Perfect Moment has a beta of -1.41, meaning that its share price is 241% less volatile than the S&P 500.
Insider and Institutional Ownership
97.8% of Deckers Outdoor shares are owned by institutional investors. Comparatively, 23.0% of Perfect Moment shares are owned by institutional investors. 0.4% of Deckers Outdoor shares are owned by company insiders. Comparatively, 22.2% of Perfect Moment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Deckers Outdoor | $5.47 billion | 2.00 | $1.02 billion | $7.05 | 11.41 |
| Perfect Moment | $22.93 million | 0.29 | -$8.72 million | ($0.15) | -0.86 |
Deckers Outdoor has higher revenue and earnings than Perfect Moment. Perfect Moment is trading at a lower price-to-earnings ratio than Deckers Outdoor, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Deckers Outdoor and Perfect Moment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Deckers Outdoor | 18.54% | 41.51% | 26.55% |
| Perfect Moment | -67.38% | -513.83% | -119.38% |
Analyst Recommendations
This is a summary of current ratings for Deckers Outdoor and Perfect Moment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Deckers Outdoor | 3 | 13 | 9 | 0 | 2.24 |
| Perfect Moment | 0 | 0 | 1 | 0 | 3.00 |
Deckers Outdoor currently has a consensus target price of $114.80, suggesting a potential upside of 42.67%. Perfect Moment has a consensus target price of $0.40, suggesting a potential upside of 210.08%. Given Perfect Moment’s stronger consensus rating and higher probable upside, analysts clearly believe Perfect Moment is more favorable than Deckers Outdoor.
Summary
Deckers Outdoor beats Perfect Moment on 11 of the 14 factors compared between the two stocks.
About Deckers Outdoor
Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.
About Perfect Moment
Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.
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